Reference Desk

Glossary

Compromise
A compromise or agreement is the package (combination of options across all issues) that both negotiators jointly agree upon after exchanging a sequence of offers.

Issue
A topic of discussion that is of particular interest in a negotiation. Each issue has a range of alternatives or options, one of which must ultimately be agreed upon by the negotiators in order to achieve a compromise.

Logrolling
A kind of trade-off between two or more decision makers: giving favours or making concessions on condition of receiving other favours.

Offer
A combination of options (a package) that is sent by one negotiator to the other. In INSPIRE, an offer consists of a package plus an optional message.

Option
One of the alternative values that an issue can take. For example, the issue "Tolerable product failure rate" may have the options "3%", "5%" and "10%".

Package
A particular combination of options that has been selected across all the issues. For example:
Price $3000
Payment Upon delivery
Failure rate 5%
is a package.

Prenegotiation
Prenegotiation is the first phase of a negotiation. It refers to the initial period (prior to exchange of any offers) when one prepares for the negotiation. Some activities involved in this phase include problem definition, preference elicitation and evaluation of alternative packages.

Post-settlement
A "settlement" is the same as an agreement or compromise, and "post-settlement" refers to the period after the first compromise has been achieved.

Trade-off
A trade-off is an exchange process in which a decision maker gives up partly on some issues so as to gain on other issues.

Utility function
A "utility function" is a subjective measurement that expresses the relative value of different packages by using a numerical scale. The numerical scale used is arbitrary, typically ranging either from 0 to 1 or from 1 to 100. The minimum number expresses the least desirable and least preferred package. The highest number represents the most desirable and preferred package.

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© Copyright 1996 The Centre for Computer Assisted Management.
Last modified: Mon Mar 3 13:39:01 EST 1997 by RJR.